Financial Rehabilitation
/ˌfaɪnænʃəl ˌrɛhəˌbɪlɪˈteɪʃən/
Definitions
- (n.) A legal process aimed at restoring a financially distressed entity to solvency and operational viability.
The court approved the financial rehabilitation plan to help the company recover from insolvency.
- (n.) A form of debt restructuring or reorganization under insolvency law to enable a debtor to continue business activities while repaying creditors.
Financial rehabilitation procedures often include repayment schedules negotiated with creditors.
Forms
- financial rehabilitation
Related terms
See also
Commentary
Distinct from liquidation, financial rehabilitation focuses on restoring solvency rather than dissolving the entity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.